See also Federalist No. 21
That the present Confederation is inadequate to the objects of the Union seems to be universally allowed. The only question is—What additional powers are wanting to give due energy to the federal government? We should, however, be careful, in forming our opinion on this subject, not to impute the temporary and extraordinary difficulties that have hitherto impeded the execution of the Confederation to defects in the system itself.
Taxation is in every government a very delicate and difficult subject. Hence it has been the policy of all wise statesmen, as far as circumstances permitted, to lead the people by small beginnings and almost imperceptible degrees into the habits of taxation. Where the contrary conduct has been pursued, it has ever failed of full success, not infrequently proving the ruin of the projectors. The imposing of a burdensome tax at once on a people, without the usual gradations, is the severest test that any government can be put to; despotism itself has often proved unequal to the attempt. Under this conviction, let us take a review of our situation before and since the Revolution. From the first settlement of this country until the commencement of the late war, the taxes were so light and trivial as to be scarcely felt by the people. When we engaged in the expensive contest with Great Britain, the Congress, sensible of the difficulty of levying the moneys necessary to its support by direct taxation, had resource to an anticipation of the public resources by emitting bills of credit, and thus postponed the necessity of taxation for several years. This means was pursued to a most ruinous length.
But about the year '80 or '81, it was wholly exhausted, the bills of credit had suffered such a depreciation from the excessive quantities in circulation that they ceased to be useful as a medium. The country at this period was very much impoverished and exhausted; commerce had been suspended for near six years; the husbandman, for want of a market, limited his crops to his own subsistence; the frequent calls of the militia and long continuance in actual service, the devastations of the enemy, the subsistence of our own armies, the evils of the depreciation of the paper money, which fell chiefly upon the patriotic and virtuous part of the community, had all concurred to produce great distress throughout America. In this situation of affairs, we still had the same powerful enemy to contend with, who had even more numerous and better appointed armies in the field than at any former time. Our allies were applied to in this exigency, but the pecuniary assistance that we could procure from them was soon exhausted. The only resource now remaining was to obtain by direct taxation the moneys necessary for our defense.
The history of mankind does not furnish a similar instance of an attempt to levy such enormous taxes at once, nor of a people so wholly unprepared and uninured to them—the lamp of sacred liberty must indeed have burned with unsullied luster, every sordid principle of the mind must have been then extinct, when the people not only submitted to the grievous impositions but cheerfully exerted themselves to comply with the calls of their country. Their abilities, however, were not equal to furnish the necessary sums—indeed, the requisition of the year 1782 amounted to the whole income of their farms and other property, including the means of their subsistence. Perhaps the strained exertions of two years would not have sufficed to the discharge of this requisition. How then can we impute the difficulties of the people to a due compliance with the requisitions of Congress to a defect in the Confederation? Any government, however energetic in similar circumstances, would have experienced the same fate. If we review the proceedings of the states, we shall find that they gave every sanction and authority to the requisitions of Congress that their laws could confer, that they attempted to collect the sums called for in the same manner as is proposed to be done in future by the general government instead of the state legislatures.
It is a maxim that a government ought to be cautious not to govern overmuch, for, when the cord of power is drawn too tight, it generally proves its destruction. The impracticability of complying with the requisitions of Congress has lessened the sense of obligation and duty in the people and thus weakened the ties of the Union; the opinion of power in a free government is much more efficacious than the exercise of it; it requires the maturity of time and repeated practice to give due energy and certainty to the operations of government. …
I am persuaded that a due consideration will evince that the present inefficacy of the requisitions of Congress is not owing to a defect in the Confederation but the peculiar circumstances of the times.
The wheels of the general government having been thus clogged, and the arrearages of taxes still accumulating, it may be asked: What prospect is there of the government resuming its proper tone unless more compulsory powers are granted? To this it may be answered that the produce of imposts on commerce, which all agree to vest in Congress, together with the immense tracts of land at their disposal, will rapidly lessen and eventually discharge the present encumbrances. When this takes place, the mode by requisition will be found perfectly adequate to the extraordinary exigencies of the Union. Congress have lately sold land to the amount of eight millions of dollars, which is a considerable portion of the whole debt.
It is to be lamented that the interested and designing have availed themselves so successfully of the present crisis, and under the specious pretense of having discovered a panacea for all the ills of the people, they are about establishing a system of government that will prove more destructive to them than the wooden horse filled with soldiers did in ancient times to the city of Troy. This horse was introduced by their hostile enemy the Grecians by a prostitution of the sacred rites of their religion; in like manner, my fellow citizens, are aspiring despots among yourselves prostituting the name of a Washington to cloak their designs upon your liberties.
I would ask: How was the proposed Constitution to have showered down those treasures upon every class of citizens, as has been so industriously inculcated and so fondly believed by some? Would it have been by the addition of numerous and expensive establishments? By doubling our judiciaries, instituting federal courts in every county of every state? By a superb presidential court? By a large standing army? In short, by putting it in the power of the future government to levy money at pleasure, and placing this government so independent of the people as to enable the administration to gratify every corrupt passion of the mind, to riot on your spoils, without check or control?
A transfer to Congress of the power of imposing imposts on commerce, the unlimited regulation of trade, and to make treaties—I believe is all that is wanting to render America as prosperous as it is in the power of any form of government to render her; this properly understood would meet the views of all the honest and well-meaning.
What gave birth to the late Continental Convention? Was it not the situation of our commerce, which lay at the mercy of every foreign power who, from motives of interest or enmity, could restrict and control it without risking a retaliation on the part of America, as Congress was impotent on this subject? Such indeed was the case with respect to Britain, whose hostile regulations gave such a stab to our navigation as to threaten its annihilation. It became the interest of even the American merchant to give a preference to foreign bottoms; hence the distress of our seamen, shipwrights, and every mechanic art dependent on navigation.
By these regulations, too, we were limited in markets for our produce; our vessels were excluded from their West India islands; many of our staple commodities were denied entrance in Britain. Hence the husbandmen were distressed by the demand for their crops being lessened and their prices reduced. This is the source to which may be traced every evil we experience, that can be relieved by a more energetic government. Recollect the language of complaint for years past; compare the recommendations of Congress, founded on such complaints, pointing out the remedy; examine the reasons assigned by the different states for appointing delegates to the late Convention; view the powers vested in that body—they all harmonize in the sentiment that the due regulation of trade and navigation was the anxious wish of every class of citizens, was the great object of calling the Convention.
This object being provided for by the Constitution proposed by the general Convention, people overlooked and were not sensible of the needless sacrifice they were making for it. Allowing for a moment that it would be possible for trade to flourish under a despotic government, of what avail would be a prosperous state of commerce? When the produce of it would be at the absolute disposal of an arbitrary unchecked general government, who may levy at pleasure the most oppressive taxes; who may destroy every principle of freedom; who may even destroy the privilege of complaining.
If you are in doubt about the nature and principles of the proposed government, view the conduct of its authors and patrons: that affords the best explanation, the most striking comment.
The evil genius of darkness presided at its birth, it came forth under the veil of mystery, its true features being carefully concealed, and every deceptive art has been and is practising to have this spurious brat received as the genuine offspring of heaven-born liberty. So fearful are its patrons that you should discern the imposition that they have hurried on its adoption, with the greatest precipitation. They have endeavored also to preclude all investigation; they have endeavored to intimidate all opposition. By such means as these have they surreptitiously procured a Convention in this state, favorable to their views; and here again investigation and discussion are abridged, the final question is moved before the subject has been under consideration, an appeal to the people is precluded even in the last resort, lest their eyes should be opened; the Convention have denied the minority the privilege of entering the reasons of their dissent on its journals. Thus despotism is already triumphant, and the genius of liberty is on the eve of her exit, is about bidding an eternal adieu to this once happy people.
After so recent a triumph over British despots, after such torrents of blood and treasure have been spent, after involving ourselves in the distresses of an arduous war and incurring such a debt for the express purpose of asserting the rights of humanity, it is truly astonishing that a set of men among ourselves should have had the effrontery to attempt the destruction of our liberties. But in this enlightened age, to dupe the people by the arts they are practising is still more extraordinary. …
That the powers of Congress ought to be strengthened, all allow; but is this a conclusive proof of the necessity to adopt the proposed plan? Is it a proof that because the late Convention, in the first essay upon so arduous and difficult a subject, harmonized in their ideas, that a future convention will not, or that after a full investigation and mature consideration of the objections, they will not plan a better government and one more agreeable to the sentiments of America, or is it any proof that they can never again agree in any plan? The late Convention. must indeed have been inspired, as some of its advocates have asserted, to admit the truth of these positions, or even to admit the possibility of the proposed government being such a one as America ought to adopt; for this body went upon original ground, foreign from their intentions or powers. They must therefore have been wholly uninformed of the sentiments of their constituents in respect to this form of government, as it was not in their contemplation when the Convention was appointed to erect a new government but to strengthen the old one. Indeed, they seem to have been determined to monopolize the exclusive merit of the discovery, or rather, as if darkness was essential to its success, they precluded all communication with the people by closing their doors. Thus the well-disposed members, unassisted by public information and opinion, were induced by those arts that are now practising on the people to give their sanction to this system of despotism.